Preci reserves the right of final approval of product and services, methods, processes and equipment and the final release of products and services.

Preci requires that all special processes required by our purchase orders must be performed by competent, qualified personnel.

Preci reserves the right to identify the requirements for interaction with our Suppliers, including:o The use of interactive documentationo The use of email/faxo Documented confirmation methods of all verbal interactions

Preci reserves the right to monitor our Suppliers' performance, including:o Supplier risko Quality of the product or service deliveredo On-time delivery of product or service

Preci reserves the right to designate requirements for verification or validation activities that we or our customer intend to perform at the Suppliers' premises.

Preci reserves the right to approve or specify any designs, tests, inspection plans, verification or criteria for design and development required by our organization from a Supplier.

Preci reserves the right to approve or specify any special requirements, critical items or key characteristics.

Preci reserves the right to approve or specify any test, inspection and verification (including production process verification).

Preci reserves the right to approve or specify the use of statistical techniques for product acceptance and related instructions for acceptance by Preci.

Preci reserves the right to require the need from Suppliers to:o Implement a Quality Management System ("QMS") and we reserve the right to review and approve the Suppliers' QMSo Require that the Supplier uses customer-designated or approved Suppliers, including process sources (e.g. special processes)o Notify Preci of nonconforming product or services immediately upon discovery, and obtain our organizational approval for nonconforming product dispositiono Require Suppliers to show evidence of processes to prevent the use of counterfeit partso Notify Preci of changes in product and/or process; changes of Suppliers; and changes of manufacturing facility locations – Preci reserves the right to approve such changeso Flow down to the supply chain the applicable requirements, including customer requirementso Provide test specimens for design approval, inspection/verification, investigation and/or auditingo Retain all records associated with the purchase orders for a minimum of 10 years or as required by contract

Preci requires the disposition of such documents to be controlled in accordance with the requirements of all applicable QMS documentation.

Preci reserves the right of access by our representatives, our customers and any regulatory authorities to all applicable records and applicable areas of all facilities, at any level of the supply chain involved in the order.

Preci reserves the right to require and request evidence that Suppliers ensure their personnel are aware of:• Their contribution to product or service conformity• Their contribution to product safety• The importance of ethical behavior

Additionally, Preci places the following terms and conditions on its Purchase Orders:

Preci shall not be responsible for any damage to merchandise shipped caused by or attributable to accidents, mishandling or negligence by the Supplier, its agencies, employees, representatives or assigns.

The Supplier shall provide provisions to allow Preci customer representative and/or regulatory agencies the right of entry to any place necessary to determine and verify the quality of contracted work, records and material.

These special terms and conditions, should they not appear in the purchase order from Preci, shall nevertheless be considered and deemed to form part thereof.

Written requests for quality review shall be provided to Preci prior to delivery of non-conforming material.

Written notification must be provided to Preci to obtain approval to process changes.

Records shall be kept for a minimum of ten (10) years unless otherwise specified on the purchase order.